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Are we heading for a bubble?

24

Comments

  • System
    System Posts: 178,412 Community Admin
    10,000 Posts Photogenic Name Dropper
    Why save money when they can just print money?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Linton
    Linton Posts: 18,481 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    mrlegend123 wrote: »
    Why save money when they can just print money?

    Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    mrlegend123 wrote: »
    Why save money when they can just print money?
    That is the point. They don't want you to save money, they want you to spend or invest it.

    Saving money for a rainy day takes it out of circulation and slows down the economy. When the economy is having a rainy day, they want you to spend and/or invest, to stop it raining.

    Due to economic uncertainty for Brexit and the consequent weakness in business confidence and slowdown of investment activity, they have declared a rainy day.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    bowlhead99 wrote: »
    That is the point. They don't want you to save money, they want you to spend or invest it.

    Saving money for a rainy day takes it out of circulation and slows down the economy. When the economy is having a rainy day, they want you to spend and/or invest, to stop it raining.

    Due to economic uncertainty for Brexit and the consequent weakness in business confidence and slowdown of investment activity, they have declared a rainy day.

    Then they should lead from the front and set an example by cashing in their gold plated pensions and spending them
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Linton wrote: »
    Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.

    Most of its probably locked up in houses at a guess?
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Bubbles rely on cheap money, easily available, and plenty of it.
    Everything is being attempted to make the economy bubble, but it's not succeeding.

    I suspect that an extended liquidity squeeze, or a simple reluctance to leverage up, may just take us straight into a dive down.

    Don't ignore the dangers implicit in a flatlining/declining GDP; with those figures, who wants to invest, who wants to lend..._
  • JohnRo
    JohnRo Posts: 2,887 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Linton wrote: »
    Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.

    It's bouncing around the globe's stock and property markets, that's where all the inflation is.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • fewgroats
    fewgroats Posts: 774 Forumite
    Fifth Anniversary 500 Posts
    Are some products like 3D printers or drones doomed for a fall?
    Advent Challenge: Money made: £0. Days to Christmas: 59.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    DiggerUK wrote: »
    Bubbles rely on cheap money, easily available, and plenty of it.
    Everything is being attempted to make the economy bubble, but it's not succeeding.

    I suspect that an extended liquidity squeeze, or a simple reluctance to leverage up, may just take us straight into a dive down.

    Don't ignore the dangers implicit in a flatlining/declining GDP; with those figures, who wants to invest, who wants to lend..._

    Lots of words to say "Buy gold" :rotfl:
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • mapk
    mapk Posts: 157 Forumite
    fewgroats wrote: »
    Are some products like 3D printers or drones doomed for a fall?

    A falling drone is inevitable ;)
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